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Is Inspired Entertainment (INSE) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Inspired Entertainment (INSE - Free Report) . INSE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. INSE has a P/S ratio of 1.32. This compares to its industry's average P/S of 2.91.

Finally, investors will want to recognize that INSE has a P/CF ratio of 18.56. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 21.31. Within the past 12 months, INSE's P/CF has been as high as 27.21 and as low as -107.78, with a median of 16.35.

Vontier (VNT - Free Report) may be another strong Technology Services stock to add to your shortlist. VNT is a # 2 (Buy) stock with a Value grade of A.

Vontier is currently trading with a Forward P/E ratio of 8.47 while its PEG ratio sits at 1.71. Both of the company's metrics compare favorably to its industry's average P/E of 58.14 and average PEG ratio of 4.23.

VNT's Forward P/E has been as high as 14 and as low as 7.10, with a median of 11.63. During the same time period, its PEG ratio has been as high as 11.37, as low as 1.14, with a median of 1.64.

Furthermore, Vontier holds a P/B ratio of 7.31 and its industry's price-to-book ratio is 8.54. VNT's P/B has been as high as 22.16, as low as 6.54, with a median of 12.09 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that Inspired Entertainment and Vontier are likely undervalued currently. And when considering the strength of its earnings outlook, INSE and VNT sticks out as one of the market's strongest value stocks.


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